I think the distributions are likely to go up '13. The collars were expensive, and had to insure the lows and the highs. We were dragging the bottom in Q3 and Q4. Our new flexibility and the collar expenses that go away will take the distributions back up. One more thing. Whiting management is not about to pull any funny business reporting true operating expenses. They already have everyone by the balls. Why screw it up?
I never ceased to be amazed that people prefer to guess and make things up rather than look at the actual numbers provided by the company. And (I assume) they have some of their hard-earned money in it. It's no wonder that most small investors lose money.
To repeat: last quarter (Nov distribution), the hedges brought in $1,238,466 or about 9c per unit.
It's listed as a line item in the distribution announcement. So your 'guess' that the hedges cost them money is at odds with the facts reported by the trust.
You haven't done your research.
The previous distribution announcements highlighted how much benefit (positive income) the hedges brought. It was spelled out as a number in the distribution announcements.
All you have to do is look at the distribution announcement to see that what you are saying is blatantly false.
Note that the hedges expired end of 2012. The Feb distribution is for Q4 2012 so that should still be with hedges. The first distribution for the unhedged period will be the one in May.
I'm not sure whether the Feb distribution will be lower than Nov (since Nov had an unusual drop), but I expect those from May onwards to be lower. There's no need to guess here - every distribution announcement has given a number for the positive income generated by the hedges. For the last distribution the hedges added $1,238,466 to the bottom line, or about 9c per unit. Thus without hedges the distribution would have been 9c lower.
Pretty dumb to 'guess' the hedges have been costing them money when the company says the reverse and even gives you the precise numbers.
I agree, no need to suspect funny business with trust expenses though. It could happen but not likely.